Week InReview: July 21, 2023

Slow-burning Minsky moments.

"We seem to live in an era of rolling financial crisis. I suspect this is the result of a massive build-up of private-sector debt. Sometimes these build-ups are accompanied by very high rates of credit growth, giving rise to a credit bubble. On other occasions, these build-ups sit simmering in the background, largely unnoticed until the proverbial s**t hits the fan, when they suddenly act as an amplifier causing a much steeper decline than would otherwise have been the case. I call these systemic vulnerabilities 'slow burn Minsky moments.' Sadly, most markets appear to carry the fingerprints of these moments today."


— Financial Times

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